Dedicated to Deposits: Deals, Data, and Discussion

Survey of the Best CD Rates for January 17, 2014

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More weaker-than-expected economic data this week caused Treasury yields to decline. The Fed is still expected to continue to taper, but they will certainly not be in a rush to speed it up.

There were a few signs this week that CD rates are slowly heading up. Two internet banks increased their 5-year CD rates. First, Barclays increased its 5-year CD rate from 2.00% to 2.15% APY. Second, State Farm Bank increased its 5-year CD rate from 1.90% to 2.05% APY (2.10% for the IRA). Both of these new rates are very competitive, but they’re still much lower than PenFed’s 3.04% APY. Nevertheless, it’s nice to see rate hikes.

January is going fast, so if you haven’t taken advantage of PenFed’s CDs, you shouldn’t wait too much longer. I’ll be very surprised if they continue past January. It may take awhile before we see 3% 5-year CDs again.

As CD rates go up, you may want to consider breaking old CDs and reinvesting them into these new CDs. You can use our Break a CD Calculator to see if the higher rate will offset the early withdrawal penalty. For example, if you opened a Barclays CD last year that had a 1.85% APY, you may want to break it and take the penalty, and then reinvest it in a new Barclays CD or a new PenFed CD. One issue to consider in this strategy is that you’ll push out the maturity date if you replace an old 5-year CD with a new 5-year CD. That can create complications with a CD ladder.

Local CD Deals

There weren’t many local CD rate changes this week.

Washington Federal ended its 1% 7-month CD special.

I just added one new local deal this week. Jeanne D'Arc Credit Union which serves members in parts of MA and NH came out with a very competitive 30-month CD special with a 1.65% APY.

Long-Term CD Break Strategy

For the short-term CDs in my lists, you might notice CDs with the note "5-year CD closed after X years". These take into account the yield after the early withdrawal penalty is applied.

If you want to compare the effective yields of other CDs after the early withdrawal penalties, please refer to our CD early withdrawal penalty calculator.

The risks of planning for early withdrawals of long-term CDs were highlighted by the deposit agreement change at Ally. The risks have also been seen at credit unions which have raised the early withdrawal penalties on existing CDs. I have more details in this blog post.

Note About the CD Survey

As I described in my rate table overview, you can use our CD rate tables to find the best rates for both nationally available CDs and local CDs. This CD survey blog posts are intended to highlight nationwide CD deals that may not be apparent in the tables. For example, I'll include the post-penalty yields of a few long-term CDs.

The CD survey blog posts are also intended to highlight the local CD deals that are available in large metro areas. There are many high CD rates, but most of these are at small banks in rural areas or at small credit unions with very narrow fields of membership. In these local CD surveys, my focus is on local CD deals that are in big cities or that are available in large areas of a state.

Yields Accurate as of January 17, 2014

Under 1-Year CD Rates

InstitutionRatesNotes
Communitywide Federal Credit Union2.00% ($50K max) 6-mo special CD w/active chkaccount review
EverBank1.10% checking/MMA intro 6-month rate ($100K/$50K max)account review
Xceed Financial Credit Union1.00% 7-month CD
Connexus Credit Union1.00% 6-month CDw/active chk
Doral Direct0.91% 9-month CDaccount review
Bank5 Connect0.90% 6-month CDNot available to MA & RI residents
CapitalSource Bank0.90% ($10K) 6-month CD special
Doral Direct0.87% 6-month CDaccount review
Ally Bank0.87% 11-month No-Penalty CDsee account review

Noteworth Local Deals

InstitutionRatesRegion
Suntide Credit Union1.10% 6-month CDCorpus Christi, TX metro
Doral Bank NY1.00% 6-month CDNYC

1-Year CD Rates

InstitutionRatesNotes
Pentagon Federal Credit Union1.11% (2.22% 4-year CD closed after 1 year)see review & risks
Melrose Credit Union1.10% 1-year CD
AloStar Bank of Commerce1.10% 1-year CD
Connexus Credit Union1.10% 1-year CDw/active chk
CIT Bank1.05% ($25K min)add-on & bump-up 1-year CD
AmTrustDirect1.05% 1-year CD
DollarSavingsDirect1.05% 1-year CD
GE Capital Retail Bank1.05% ($25K min) 1-year CDFormerly MetLife
Ally Bank0.99% 1-year CD60-day early withdrawal penalty

Noteworthy Local Deals

InstitutionRatesRegion
Suntide Credit Union1.50% 1-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.50% 12-month CDCorpus Christi, TX metro
South Florida Federal Credit Union1.26% 1-year CDSouth Florida
LOMTO Federal Credit Union1.20% 1-year CDparts of New York City
Doral Bank NY1.20% 1-year CDNYC
HAB Bank1.15% 1-year CDSouthern California
Beal Bank1.11% 1-year CDSoutheast FL
HAB Bank1.10% 1-year CDNYC metro

18-month CD Rates

Pentagon Federal Credit Union1.48% (2.22% 4-year CD closed after 18 months)see review & risks
Barclays1.43% (2.15% 5-year CD closed after 18 months)see review & risks
Xceed Financial Credit Union1.25% 19-month CD
Ally Bank1.16% (1.60% 5-year CD closed after 18 months w/new ewp)see review & risks
AloStar Bank of Commerce1.15% 18-month CD
GE Capital Retail Bank1.15% 15-month CD specialFormerly MetLife

Noteworthy Local Deals

InstitutionRatesRegion
Gulf Coast Federal Credit Union1.65% 18-month CDCorpus Christi, TX metro
University of Iowa Community Credit Union1.25% 18-month CD specialmany Iowa counties
NEFCU1.25% 20-month CDLong Island, NY
Doral Bank NY1.25% 18-month CDNYC

2-Year CD Rates

InstitutionRatesNotes
Pentagon Federal Credit Union1.67% (2.22% 4-year CD closed after 2 years)see review & risks
Barclays1.61% (2.15% 5-year CD closed after 2 years)see review & risks
Pentagon Federal Credit Union1.52% (3.04% 7/5-year CD closed after 2 years)see review & risks
Pentagon Federal Credit Union1.41% 2-year CD
Northrop Grumman Federal Credit Union1.40% ($40K) 1.25% ($2.5K) 2-year CD
Melrose Credit Union1.36% 2-year CD
Ally Bank1.27% (1.60% 5-year CD closed after 2 years w/new ewp)see review & risks
Connexus Credit Union1.30% 2-year CDw/active chk
AloStar Bank of Commerce1.25% 2-year CD
Bank5 Connect1.25% add-on 2-year CDnot available to MA & RI residents
CIT Bank1.20% ($25K min) add-on & bump-up 2-year CD

Noteworthy Local Deals

InstitutionRatesRegion
Suntide Credit Union1.90% 2-year CDCorpus Christi, TX metro
Gulf Coast Federal Credit Union1.75% 2-year CDCorpus Christi, TX metro
NavyArmy Community Credit Union1.70% ($100K) 1.40% ($1K) 2-year CDCorpus Christi, TX metro
Doral Bank NY1.45% 2-year CDNYC
LOMTO Federal Credit Union1.45% 2-year CDparts of New York City
BrightStar Credit Union1.25% 23-month CD (+0.25% w/chk relationship)parts of Southeast FL

3-Year CD Rates

InstitutionRatesNotes
Wilshire State Bank2.28% 3-year installment savings account w/auto xfers, $100K maxaccount review
Pentagon Federal Credit Union2.03% (3.04% 7/5-year CD closed after 3 years)see review & risks
Pentagon Federal Credit Union2.02% 3-year CD
Barclays1.79% (2.15% 5-year CD closed after 3 years)see review & risks
Connexus Credit Union1.75% 3-year CD w/active chk
Melrose Credit Union1.61% 3-year CD
Northern Bank & Trust Company1.60% 3-year CD
Intervest National Bank1.45% 3-year CD
Bank5 Connect1.18% (average apy) limited no-penalty 3-year CDnot available to MA & RI residents

Noteworthy Local Deals

InstitutionRatesRegion
NavyArmy Community Credit Union2.05% ($100K) 1.75% ($1K) 3-year CDCorpus Christi, TX metro
Spokane Teachers Credit Union (STCU)2.02% ($25K) 30-month CDWA State & parts of ID
Gulf Coast Federal Credit Union2.02% 3-year CDCorpus Christi, TX metro
Jeanne D'Arc Credit Union1.65% 30-month CDparts of MA and NH
LOMTO Federal Credit Union1.60% 3-year CDparts of New York City
Doral Bank NY1.60% 3-year CDNYC
Department of Commerce FCU1.55% 3-year CDWashington DC

4-Year CD Rates

InstitutionRatesNotes
Pentagon Federal Credit Union2.28% (3.04% 7/5-year CD closed after 4 years)see review & risks
Pentagon Federal Credit Union2.22% 4-year CD
Barclays1.88% (2.15% 5-year CD closed after 4 years)see review & risks
Melrose Credit Union1.86% 4-year CD
CIT Bank1.75% ($100K) 1.65% ($1K) 4-year CD
Nationwide Bank1.72% ($100K) 1.67% ($500) 4-year CD
Andrews Federal Credit Union1.71% 4-year CD
GE Capital Retail Bank1.70% ($100K) 1.50% ($2K) 4-year CDFormerly MetLife
Communitywide Federal Credit Union1.70% 4-year CDaccount review
EverBank1.68% 4-year CD
Barclays1.65% 4-year CD
Intervest National Bank1.65% 4-year CD
Ally Bank1.30% Raise-Your-Rate 4-year CD

Noteworthy Local Deals

InstitutionRatesRegion
Bank of Utica2.25% 4-year CDCentral New York
HarborOne Bank2.00% 4-year CDNew England
Institution For Savings2.00% 4-year CDparts of MA
Bayer Heritage Federal Credit Union1.89% 4-year CDparts of WV, OH & SC
Department of Commerce FCU1.80% 4-year CDWashington DC
MidFirst Direct1.75% 4-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
LOMTO Federal Credit Union1.75% 4-year CDparts of New York City
Police and Fire Federal Credit Union1.75% 4-year CDPennsylvania
HAPO Community Credit Union1.70% 4-year CDall of Washington State
Doral Bank NY1.65% 4-year CDNYC
Fifth Third Bank1.50% 4-year CD specialseveral eastern and midwestern states

5-Year CD Rates

InstitutionRatesNotes
Pentagon Federal Credit Union3.04% 5-year CD
Pentagon Federal Credit Union2.43% (3.04% 7-year CD closed after 5 years)see review & risks
Stanford Federal Credit Union2.27% ($100K) 5-year CD, requires chk w/ddaccount review
EverBank2.16% 5-year CD
Barclays2.15% 5-year CD
iGObanking.com2.15% 5-year CD
Melrose Credit Union2.12% 5-year CD
CIT Bank2.05% ($100K) 1.85% ($1K) 5-year CD
GE Capital Retail Bank2.05% ($100K) 2.00% ($25K) 5-year CDFormerly MetLife
State Farm Bank2.05% 5-year CD, 2.10% IRA
State Bank of India - New York2.05% 5-year CD
GE Capital Bank2.00% 5-year CD
Fidelity New Issue Brokered CD1.90% 5-year non-callable CDissued by GE Capital Retail Bank

Noteworthy Local Deals

InstitutionRatesNotes
Credit Union West3.20% (IRA $50K) 2.95% (non-IRA $50K) 5-year CDPhoenix metro
Bank of Utica2.50% 5-year CDCentral New York
American Airlines Credit Union2.47% 5-yr/1.46% 2.5-yr CD ladderlimited membership
Progressive Credit Union2.32% 5-year CD (NYC with unique FOM)account review
MidFirst Direct2.25% 5-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
BBVA Compass2.25% (w/relationship checking) 2.00% (w/o relation) 5-year CDparts of AL, AZ, CA, CO, FL, NM and TX
Bayer Heritage Federal Credit Union2.15% 5-year CDparts of WV, OH & SC
Dime Savings Bank2.10% 5-year CDNew York
Department of Commerce FCU2.10% 5-year CDWashington DC

Over 5-Year CD Rates

InstitutionRatesRegion
Fidelity New Issue Brokered CD3.30% 10-year non-callable CDissued by GE Capital Bank and GE Capital Retail Bank
Pentagon Federal Credit Union3.04% 7-year CD
Fidelity New Issue Brokered CD2.60% 7-year non-callable CDissued by First Merchants Bank
Apple Federal Credit Union2.50% 10-year CD
Apple Federal Credit Union2.10% 7-year CD
Intervest National Bank2.07% ($95K) 2.05% ($2.5K) 10-year CD
GE Capital Bank2.05% 6-year CD

Noteworthy Local Deals

InstitutionRatesRegion
Hutchinson Credit Union3.15% ($250K) 3.10% ($100K) 3.05% ($25K) 10-year CDKansas
PeoplesChoice Credit Union3.04% 10-year CDYork and Cumberland Counties of Maine
Frick Tri-County Federal Credit Union3.00% 10-year CDparts of Western PA
SACU2.80% ($90K) 2.75% ($10K) 10-year CDSan Antonio, TX
Dollar Bank2.75% 10-year CDPittsburgh and Cleveland
MidFirst Direct2.75% 7-year CDAR, AZ, CA, FL, MO, NH, NV, NY, OK, TX, and WY
Franklin Federal Savings Bank2.73% 7-year CDRichmond, VA metro
Frick Tri-County Federal Credit Union2.50% 8-year CDparts of Western PA
MidFirst Bank2.70% 7-year CDAZ and OK
Wright-Patt Credit Union2.51% ($100K) 2.41% ($500) 6-year CDUS gov military and civilian personnel, Parts of OH
Hutchinson Credit Union2.50% ($250K) 2.40% ($100K) 2.30% ($25K) 6-year CDKansas
Franklin Federal Savings Bank2.42% 6-year CDRichmond, VA metro
SACU2.30% ($100K) 2.25% ($10K) 7-yearSan Antonio, TX
Fifth Third Bank2.00% 6-year CD specialFlorida

Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.

  Tags: CD rates

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Comments
2 comments.
Comment #1 by lof posted on
lof
There should be a lot of monies flowing out some credit unions (offered 5% cd's, 5 years ago), now trying to renew the cd's at 1 to 2%.  To counter the out flow of monies, something as to give.  I hope that will bring us back to some 3%+ cd's.

5
Comment #2 by Anonymous posted on
Anonymous
Just where is all the "monies" that supposedly are flowing out of some credit unions going?

4
Comment #3 by Anonymous posted on
Anonymous
#2 It's going to the credit unions and banks listed on this blog which offer better deals.

7
Comment #4 by Anonymous posted on
Anonymous
Then it's still saying in CUs and banks.  That's my point.   Just different ones.

3
Comment #5 by Anonymous posted on
Anonymous
Ken is listing the Communitywide 2% deal in first place for short money.  It's a six month CD, and that's an outstanding rate for six month money.  I have a question, please:

I did the Communitywide 2%, one year CD special, deal in the fall of 2013.  I'm very happy with the CD and with Communitywide as a CU.  But does my already having done that earlier deal disqualify me from participation in the 6 month CD Ken is listing now?  

4
Comment #6 by Anonymous posted on
Anonymous
At first I had the 2% one year CD with an ACH deposit of a small portion of my pension.  Subsequently I established a 2% 6 month CD without having any other requirements to satisfy.  I was anticipating another deposit requirement via ACH but they have not told me that I need to do that.

2